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tv   Mad Money  CNBC  April 25, 2013 11:00pm-12:01am EDT

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it's simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now! [ cheers ] [ music playing ] boo-yah! welcome to villanova! ♪
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i'm jim cramer. welcome to the sovereign state of cramerica. coming to you today from the villanova school of business! [ cheers ] a lot of people want to make friends, but i just want to make you money because my job is not just to entertain you, but to educate you. so tweet me @jimcramer hashtag mmnova. stocks, stocks are about the future. we can be concerned about the sequester and the faa and the airplanes.
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we can fret about china and freak out about spanish unemployment or disappointing results from a semi conductor or a supermarket stock or a big multinational like 3m. the averages neglected to really reflect that negativity. the dow gaining 25 points, s&p advancing .39%. nasdaq climbing .62%. but never forget, stocks represent a call on the future, not just the present and not next week or next month, either. even as short-term considerations so often prevail in the conventional wisdom that you hear every day. what a terrific opportunity here on the campus of the great villanova business school to talk about the future, to talk about what it means to dream about the future five, ten years from now and invest like that, something for everyone, from the students here now, to those who think young. so let's do it! it's 2013. but let's invest like it's 2020
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and put together a buy at homework portfolio, not buy and hold, because we know better than that, especially here at 'nova where we study. we got to stay in touch with our stocks in case things change, to invest now in order to make the most money in the future. first we have to believe that many diseases, which are the scourge of our current existence, will be conquered by the great american biotech industry in 2020. hepatitis c, blood cancer, multiple sclerosis, we have to hope if not have conviction that some of these will be vanquished. pick one, gilead, celgene, biogen, idec. these are the real calls from the future of medicine and healthcare. they're the next generation's pfizer and bristol-myers. second, we know that social media, the cloud, mobile, the web, they will be integral to everyone's lives in 2020 around the whole planet. so we have to bet that google,
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facebook, twitter, if it comes public, will be the dominant players. i don't think netflix will be around. by 2020, microsoft or apple will have come to their senses and bought the darn company and turned over the reins to its visionary ceo. think about who is going to take over and who is going to get taken over. do we really want to think how facebook wants to monetize its, sorry, 2 billion users by 2020. next, here's a shocking thought and a good one. we have to envision north america as energy independent, because while we don't see it now, by 2020, we will have harnessed all the natural gas, the cleaner, cheaper fuel, to make it so trucks, the biggest users of dirty diesel, will be operating on domestic liquified natural gas. a move that will smash opec, clean the skies and create
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millions of jobs while we're at it. winners, conoco philips, transcanada, cummins. why them? conco is the largest major oil company with natural gas exposure. enbridge transports the oil and the gas where it needs to be, not just where it's found and cummins is a tremendous truck engine manufacturer with the best engines, which trucking companies throughout the country will convert to. you want independent oil companies that can be the next exxon and chevrons in 2020. those are the ones you may never heard of. those will be the next giants. they are constructive, not because they represent a call and the best thing we have in this country right now, a nascent energy boom that will make america an industrial powerhouse again. also because these companies pay bountiful dividends. why is this important? because if you own stocks and reinvest those dividends the power of compounding, an amazing thing will allow you to double your money in these stocks in a dozen years, simply by doing nothing but automatic
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reinvesting. now, 'nova business school students where we are now understand that money multiplies all by itself if you re-invest it. but all you need to know is that dividends are the source of a huge portion of the gains the stockmarket's made in the last decade, even as today we challenge the all time highs in stock appreciation. remember, you pick a stock with a bountiful dividend, your money may double in a shorter period of time than you realize, even if nothing happens. i know, boring. not like the 'nova 1985 championship basketball team! [ cheers ] >> but boring's good news when it comes to stocks. what else? we have some dominant manufacturers in this country that are becoming stronger, not weaker. even as we have developed a terrible confidence problem at the moment in this country, one that has given us a total inferiority complex, i think largely created by washington. who knows how to make things better than anyone else? we do.
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so pick among caterpillar, boeing, honeywell, the best of the best of the world's manufacturers. the world will be better in diversification in 2020 than we are now. there is a sense short term that gold is finished because it is finally going down after 12 years of going higher. today we had a really nice move. i think we have to believe our paper money may not be as valuable as it is now in 2020, so why not own gold coins? we want something international. i believe the country is going to have the best long term growth rate, not russia, not china, not india, mexico, bountiful resources and a fantastic labor force and democracy. etf, if best of the mexican stock market. finally, we have to be able to speculate. you can speculate. if a hopeful stock flames out, young people have their whole lives to make that money back.
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those who are older and can speculate to stay interested, listen up, how about usairways? it is buying amr and we won't always be plagued by a shortage of airport controllers, and finally, let's go local. we're in philadelphia. i say take a look at radian, housing insurance can double from 11 and change long before 2020. i bet it won't be independent by then. here's the bottom line. don't wait if you are young. put a couple of bucks away in some stocks. even students have a few extra bucks to invest. and do it for the future. just ask the people who bought berkshire hathaway 30 years ago. they're all millionaires if they bought just seven shares. you invest for the future, you must think that you can be millionaires, too. let's take our first question. >> boo-yah, jim, i'm anthony from new hampshire. >> boo-yah, anthony. >> you are always so energetic
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on the show. my coffee of choice is dunkin' donuts, i wonder what yours is? >> i have dunkin' donuts, i'm on the floor of the stock exchange, starbucks, i didn't like exactly what the caller called. you have to do the conference call, but i'm ecumenical and i like them both. yes. >> great to have you, jim. i'm sean from burlington. >> hey, how are you? >> my question was what are your thoughts on diversifying real estate investment trusts and specifically spg real estate funds? >> i like simon property groups very much. i have to like them more, don wood the ceo was here earlier today. i think the best manager in the group. i like that group. it's a great hedge against inflation. they keep raising their dividends.
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good group, good to bring that group up. yes, sir. >> hi, this is vinod from new york. i want to ask you about freeport mcmoran, they made acquisitions last year oil and gas assets. what do you think of that acquisition and the stock now? >> i didn't like the acquisition, it's bouncing at 28 and 38 and change. i respect get under 4% at 30 is good. i didn't like the nonhanded acquisition. physical pure play of copper and gold, we don't have it anymore. sell. okay. more back to school at villanova coming up! [ cheers ] coming up, making the grade, the back-to-school tour is in session. cramer isn't just conducting class. he's passing out report cards on a tech titan. will microsoft pass or fail?
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it's the professor's call. and later, a wing and a prayer? mild, medium or hot? this 52-week high flyer has been blazing. but has the ride just begun? cramer's on campus with the ceo of buffalo wild wings just ahead, all coming up on "mad money."
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[ music playing ] [ cheers ] while we're here at beautiful villanova university, let me ask you a question. how is college different from the stock market? simple. in college, there's always some straight-a student who can help you study, someone who will absolutely know the right answers. the stock market, different.
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we have a whole profession of people highly paid, research analysts whose job it is to predict what will happen with individual companies, but you can't rely on these analysts the same way you rely on your friend who gets the straight as, because at any given moment, it's very hard to tell which analysts will be right and which ones will be wrong. that's never more apparent than right now, in the middle of earnings season, when so many companies are reporting, most report today, disappointment, upside surprises all over the place. that's why this is the perfect time to grade the analysts. and because professor cramer is a very harsh grader, we're going to do it using a big name stock where there turned out to be a huge disparity between the reality and the expectations. i'm talking about microsoft, a
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company that was for the most part written off and left for dead as one more casualty of the declining pc industry before it reported last thursday. but then the numbers came out and holy cow! hallelujah! microsoft delivers a 5 cent earning beat off a 67 cent basis. it's alive! in response, the stock jumped from $28.79 to about a buck higher the next day. two bucks higher the day after that. now the darn thing seems unstoppable. an 11% gain from where it was before it reported just a week ago. so what the heck happened here? how did the analysts get it so darn wrong? first of all, one reason so many got the quarter wrong, it's a real hard topic, people.
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it's really hard, to nail a quarter, you have to guess what will the numbers be, also how the stock will react. those are two separate things. kind of like the math and the english on the s.a.t. the analysts may know the math, but then the english knocks them out. there are very few people who can consistently ace both. in microsoft's case, you actually had the best of the best among the analysts, you know what, they got it totally and completely wrong. >> the house of pain! >> they brought microsoft public back in the day at goldman. he was the closest research analyst to bill gates and steve ballmer, yet these analysts simultaneously downgraded microsoft back on april 11th, right before the company reported based on what they thought would be weakness across the board because of how bad the pc market is. then there was a third downgrade
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before the quarter. this was probably the most painful of all. the downgrade begins, quote, after maintaining a buy since september, 2008, we are downgrading microsoft to neutral and trimming our price objective to $33. bank of america actually came close to the numbers. the estimates weren't that far off, but they got the thesis about the direction of the stock wrong. bank of america never got to canaan. it belonged to the microsoft bulls, not to the bears. i feel bad. when you see downgrades, it seems like the bearish analysts didn't think of microsoft as a play on personal computers. that's where they went wrong. because when microsoft reported, what mattered was not the pcs but al these other divisions, the cloud business, entertainment devices, which exceeded the forecast.
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plus a new x-box is on the horizon. more important, though, it's hard to be right when everyone agrees with you. what the newly converted bears didn't see was all the negatives about pcs were baked into the stock, but none of the positives about the other businesses were. as it turned out, those three downgrades were the darkest before the dawn moment as that's where microsoft bottomed. so were there any a students, did anybody get this one right? yeah. this guy at berstein research, he nailed it, in fact, right before the quarter, he wrote, quote, we believe the current share price embeds an unrealistically bad scenario of noting negative growth, to search and mobile into perpetuity and tens of billions in additional value destruction to ill fated acquisition and investments, end quote. that was the consensus picture. it was too darn bearish. hence, they had a buy, buy, buy on the stock. buy, buy, buy!
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and, in fact, microsoft's cloud business was excellent. entertainment business was better. online was good, managed costs well. all these businesses that we used to be thinking are ancillary are now drivers of the stock. plus there is even hope for the future of pcs, new generations of multiples coming out, longer battery life, lower prices. they admit it could be a catalyst. so what's next for microsoft? because we care not about where our stock has been, but where it's going. when the stock bottomed after downgrades, it was trading a measly 10 times earnings, 3% yield. that's way too cheap for a company like this, any catalyst ahead. the stock has moved up more than 11% since then. i do not think it is done. if microsoft is finally getting credit for the non-pc businesses and this quarter tells me it's the case, then i believe the stock is still very cheap and it can go much higher as the bears and neutral types have to go positive, and neutral guys, well, let's just say, don't be left behind, because the new
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x-box launches in a few weeks time. here's the bottom line, even the best analysts can get bad grades sometimes, but when a host of analysts starts downgrading a stock that's already very cheap like they did with microsoft, you have to wonder if maybe the negatives they are worried about are already baked into the share price. mike merler at bernstein, he nailed it. don't feel bad if you missed the move, because i think microsoft has more room to run and believe it or not, the dominant box, the x-box, not the pc, is leading the way. let's take some questions. >> hey, jim, boo-yah, good to have you here in villanova. my question is, i'm trying to diversify outside u.s. equities, thinking china, i know you have a conference call coming up later. i want to hear your thoughts. >> i'd like to hear the call.
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i don't like chinese stocks. i think the chinese people are amazing. i think it's a great growth country, but the stocks, themselves, they need to get their act together in terms of having disclosure. but china, no, i'd rather invest in companies that do business in china than in chinese companies. yes, sir. >> hey, jim, alex from new jersey. >> hi, alex. >> how are you doing? so there has been a growing demand in voice command applications like siri. the other day direct tv came out with an app that lets users command the tv by talking to their phone. i want to know what you think about nuance. >> historically, every time i tried to invest in a sound duplication business i lost money. that one will have to go up without me. all right, there is more back to school from villanova university after the break! [ music playing ]
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>> wing and a prayer? mild, medium or hot, this 52-week high flyer is blazing. has the ride just begun. cramer is on campus with the ceo of buffalo wild wings just ahead. hoo-hoo.
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hoo-hoo...hoo-hoo. hoo-hoo hoo. sir... i'll get it together i promise... heeheehee. jimmy: ronny, how happy are folks who save hundreds of dollars switching to geico? ronny:i'd say happier than the pillsbury doughboy
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on his way to a baking convention. get happy. get geico. fifteen minutes could save you fifteen percent or more. is its own reward. but there's nothing wrong with enjoying a little extra reward. ♪ that's why southwest built a better rapid rewards program with unlimited reward seats, no blackout dates, and points that don't expire. rewards that actually reward you. we are southwest. welcome aboard. you never want to buy a stock that you can't understand, so while we're here on campus, let's talk about something
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that's easy for the college demographic or really any demographic over the age of 21 to get their heads around. let's talk beer and wings, which come together in a terrific stock of buffalo wild wings, bwld, a regional to national powerhouse with 915 locations as of last quarter that i think can only double, maybe, hey, 1,700, maybe 1,800, i don't know, i think it can. buffalo wild wings have been roaring lately up to an all time high thanks to a massive decline in chicken prices and a crowd that loves going there. this stock has been a huge winner, up 79% since 2011, it's rallied since the end of july, right after it got hammered in the wake of a tough quarter. we did not waver in our report.
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reports again next monday. before that happens, i want to help you understand this story, which is why i'm so thrilled of sally smith, the president and ceo of buffalo wild wings here with us tonight. ms. smith, welcome back to "mad money." [ cheers ] how are you? great to see you. >> it's nice to be here. >> it's been a remarkable run. it's been a remarkable run. but i do want people to understand that as much as it's been great, there's a lot more room for a lot more buffalo wild wings stores, both in this country and around the world. >> there absolutely is and we're going to start in philadelphia. we just crossed the 900 unit threshold and we've identified that we think we can get into 1700, 1,800 markets in the u.s. and canada, and i just returned from an international trip and a lot of opportunity internationally as well. >> well, we know from some of the great chains, whether it be mcdonald's or yum or so many others, that the concepts we have here are loved in other places. is that your initial take when
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you go around the world? >> absolutely. they love american brands. and as we do our research, they talk about -- yeah, you'd have to have some regional specialties, but they want it to be an authentic american brand. >> one of the things i know your quarter is about to come up. so i won't ask you about the quarter. >> thank you. >> there are two variables that people talk about in terms of your company that people talk about. one is the price of wings, they vary so much. next is the schedule of sports because that can determine the crowds. which are more important as the leverage to earnings, sports or wing prices? >> you know, i think the most important thing is sports. we have dealt with wing prices for 30 years. they go up, they go down. 2011, one of the lowest prices we've ever seen. 2012, the very highest prices we've seen. we're still the same company. but sports drives buffalo wild wings. it drives the guests into the restaurant. i always want that great matchup. >> we are at a school right now
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that won the ncaa championship in 1985, a proud moment. [ cheers ] >> march madness, good this year? >> loved march madness. we thought it was a great lineup. for the first time were aligned with the ncaa. we were the official hangout for march madness. and this carries us through for the next couple of years as being the official hangout for ncaa sports. that means 89 different sporting events. >> i also know you are on the mlb.com home page. i went there. >> yes. >> and you also have to be enjoying the fact that there are two new york teams, big market. i don't want to endorse new york in philadelphia, and nba, a lot of people go to nba games. there is almost one every night with a giant audience, it's got to help. >> any game helps, naturally. the better they are, the closer they are, the better. we love overtime. >> the super bowl must have been amazing. >> there was something like
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125,000 tweets during super bowl about was the blackout caused by buffalo wild wings and the similarity to our commercials. it was a lot of fun. >> the similarity is your commercials are much loved. your social media and advertising, i know you are doing more radio. is that working? >> we have a lot of national radio. radio is that call to action. it reminds them of what's happening on that day at buffalo wild wings. social media, it's about engaging the guests. we had pop a shot at the ncaa. you were able use your smartphone, come in, make basketball, you should try it. you're the expert. >> well, i'd like to think. i went to the web and asked people, @jimcramer on twitter, what are they looking for. i get a bunch of people, my partners at mcdonald's, they all want to know, what happens at mcdonald's succeeds in this bone-in chicken. are you concerned? >> i think the fact that mcdonald's is doing bone in
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chicken really speaks to the popularity of chicken wings. the occasion for someone going to mcdonald's is different. you come to get together with your friends, your family, really to cheer on your sports team. that's a different occasion. so i think it actually increases the importance and the viability of chicken wings. >> category? temple, lasalle, saint joe, villanova, penn, i know you have been looking at your stores here. is this enough room? could you have a buffalo wild wings next to every school and still think you'd do well? >> i do think we can. philadelphia, great demographics. we have been in the city for about three, two-to-three years. we are looking to continue to expand and i can't think of anything better than for each school to have their own buffalo wild wings. [ cheers ] >> sally smith, the president and ceo of buffalo wild wings. all time high, don't get on that list unless you are pretty darn good. don't move, a special back-to-school edition of the lightning round is next. [ music playing ]
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[ music playing ] [ cheers ] you hurt my feelings, todd. i did? when visa signature asked everybody what upgraded experiences really mattered... you suggested luxury car service instead of "strength training with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm... [ male announcer ] at visa signature, every upgraded experience comes from listening to our cardholders. visa signature. your idea of what a card should be.
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[ cheers ] all right, wildcats, before we all head to maloney's or kelly's, it's time for a special "mad money" back-to-school tour invades villanova university edition of the lightning round on "mad money." that's right, take your questions rapid fire. questions rapid fire. itell you whether to buy or sell sell sell. my staff prepares the graphics on the fly. we play this sound and then the lightning round is over. are you ready skidaddy? now it's time for the lightning
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round. >> cramer, this is kyle from new jersey. i'm excited to welcome you back to villanova and to philadelphia with a big stuttering b-b-b-boo-yah. so, dr. cramer, you got me started a few years ago investing. i can't thank you enough, thank you, i'm so glad to be studying here for an mba under your tutelage. i bought stock and how high is it going to fly? >> next stop is jimmers for $100, great selection, stick with it. yes. >> hey, jim, i'm victoria from >> hey, jim, i'm victoria from long island, new york him i want to give you a big welcome, boo-yah from 'nova nation. i was wondering how you felt about disney recently? >> i'm sorry. >> disney. >> the stock was down today, i was thinking to myself, this might be the chance, if this goes under $60 you pull the trigger. i think it would be a gift. all right.
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let's take it over here. >> hi, jim, i'm mary from new jersey. great to have you at 'nova. what are your thoughts on exxon? >> i didn't like the quarter for exxon, i really didn't. i think you can get more from i think you can get more from noble or eog. i think you should sell sell sell and go for a super major to be not the major it was. >> boo-yah, jim, joe here from pennsylvania, what do you think of the lyon's stock? >> i think at this point i would rather go with disney. look. i like the movie release. i don't like to play that game. who knows whether the next edition of "hunger games" doesn't work. >> yes. hey, jim, tom from doylestown, pennsylvania. you mentioned housing is hot. what is your take on beezer?
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>> let's go toll brothers. doylestown, i love. i lived there a long time. >> hey, jim, frank from long island here. i'd like to get your thoughts on 3d systems. they have been inquisitive in the recent past. it could be a game changer across many different industries. >> i think it's absolutely a terrific stock when it comes to speculation. i think it's a crowded segment. 3d systems is too ricky for this guy. >> hey, jim, matt from new jersey. my question is about ford. i know they have been surging lately. i know you have a close connection with your ford, i think in reality it's not a good play. >> here's the problem with ford. it's still europe, it's europe, it's a coiled spring. you get your price, 20 bucks. yes. >> hi, jim, i'm jim from maryland, i am tired of seeing girls wear uggs in the summer. what do you think of deckers? >> i have liked the stock. i got to do more work. >> hi, jim, kerry from
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connecticut. i'm thinking of investing for the first time, i want to know your thoughts on amazon. >> i think amazon again, i'm a homework guy, i got to be on that conference call. i think amazon is a great stock. i did not put it at the opening, i am concerned about this particular quarter. but i do like the concept. >> hey, jim, colleen from pennsylvania. what do you think about nordic american takers? >> i think the dividend is okay. i think it's bottomed. but i don't think an oil tanker company is going to do very well when our continent becomes energy self sufficient. >> how is it going, jim, matthew from louisiana. i want to know your opinion on gun stocks and the policy in washington. smith and wesson. >> no, i don't, look, i have been recommending cabela's. they are up huge today. i would like to take profits cabela's. i don't care much for smith an wesson. >> long time listener, first time caller. john from philly, my question
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is, chipotle is up, do you think it's a red hot stock. it's up from about, 80 points ago. let it come in. if i can get it at 40, i will pull the trigger. that, ladies and gentlemen, is the conclusion of the lightning round! [ cheers ] >> announcer: the lightning round is sponsored by td ameritrade. [ music playing ] from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.
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[ music playing ] welcome back to the pavilion here on the campus of villanova university. [ cheers ] >> home to some of the best and brightest students in the united states. [ cheers ] >> so i'm going to open it up, open up the floor and see what else is on the mind of the great citizens of the 'nova nation! it's time to quiz cramer. it's all fair game. who's first? >> hey, jim, tom from pennsylvania. i want to give a big
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v-v-v-villanova boo-yah to you. >> that's a good boo-yah. >> i want to know if you went back in time to talk to yourself as a senior graduating from college, what advice would you give? >> aside from the nasty breakup that year. how i could have used some advice. you know what i will tell you? what i should have been thinking about was having more fun than i did. i know that sound strange. but i should have gotten the fun part done earlier. i was too worried about working, too worried about finding a job and was too, let's say, i applied to 50 college, i applied to 50 newspapers. i was the editor of my college paper. i was rejected by every single one of them. i went from being up here to down there. i should have been less serious then instead of more serious. then later on, everything went pretty well, but thank you. >> hi, jim, tony from boston. i want to give you a big boo-yah. >> thank you. thank you, for all those in
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boston, we know it's tough times and we're with you, really, man. >> thank you. in your days before "mad money" when you were running your hedge fund, what was your darkest day and how did you overcome it? >> october 8th of 1998. i lost -- that was a day where my fund was opened so people could take their money out. i had people who had been with me for years and years and years. they lost faith in me. to have people lose faith in you who you made millions for is a very difficult thing. i read "endurance" to try to be able to deal with the pain of it. and i got over the pain about, you know, about five weeks ago. it's tough when people lose faith in you, but you must never lose faith in yourself. >> hi, jim, mike from new york. >> how are you? >> over the past few years, hedge funds that trade algorithmically based on the latest tweets or blog posts have been popping up all over the place.
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in the past, investors would read newspaper headlines to get ideas about trading. which market retail would you say? >> my friend called wapner's show at the half. he said a lot of great things. we need to find ways for individuals to make money. the algorithmic is antithetical to what i i believe in. do the homework. i think the show's record after eight years shows you should try to find the stocks you like, not dissing index funds, reinvest and reinvest and get very rich. >> hi, jim, lizzy from ohio. my hidden talent is that i can wiggle my ears. >> all right. that's fabulous. >> and i was wondering what your hidden talent was. >> what's my real talent?
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>> your hidden talent. >> holy cow, it ain't singing. my hidden talent, i would say my hidden talent is to be able to work with absolutely no sleep whatsoever. none, i mean, literally none. there have been many, many all-nighters i have come out here, people haven't been able to tell. fortunately, i stayed at the conference centre last night in villanova and actually got some sleep. >> hi, pat's or geno's? >> that's easy, my dad have had his, i'm older than he is, his 85th, 86th, 87th in the inner sanctum at geno's, i have been inside geno's, it's incredible, so pat's, no thank you. okay. well, i hope i passed that test. stick around, i'm turning the tables and putting villanova's finest to the test and stay with
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cramer. [ music playing ] [ music playing ] [ cheers ]
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[ music playing ] [ cheers ] welcome back to villanova university. we saved one of my favorite moments for last. there is nothing i like more
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than meeting the fabulous students you have been hearing from all day. it's my favorite part of the back-to-school tour. it's inspiring to see all their passion and their visions for the future. i love it! in just a second, you're going to meet a few students from the villanova equity society. let me tell you, they are the real deal. they research, they manage funds. today i'm putting them to the test, just like when i interviewed people for my old hedge fund job. they come prepared with investment ideas. let's see who they got. who's up first? >> hey, jim, i'm from ellicott city, maryland. i have to start out by giving you a big b-b-b-boo-yah. today i wanted to talk about schlumberger, i know the oil field has had low rig counts and volatile energy prices, the bottom line is i think they're great value and the best in an
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industry. >> i couldn't agree with you more. i think one of the things that happened, the gulf of mexico, i think schlumberger is the best of the best. that is a terrific selection. schlumberger, the best of breed. i like this way you think. >> let's go. >> well done. well done. [ applause ] >> hi jim, my name is alex. i'm a junior from san francisco bay area. >> excellent. >> i want to talk about today is ebay. >> it's tough, isn't it? it went down again today. give me your take on the quarter, because a lot of people were so worried about europe. >> i think the concerns in the short term quarter two over europe and the currency effects are short sighted. i think it presents a nice buying opportunity to get in a stock that has compelling growth, opportunities and strong fundamentals. >> pay pal, worth the price of the stock? you have to believe at a certain
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point they have this great marketplace business and pay pal, if they were ever to split it off, i think it's worth more. >> i agree with you. i like three catalysts going forward. they're just starting to expand into emerging markets. i think if they can tap into the underbanked population, that can be good for them. two, they are starting to capitalize on that now as mobile becomes a bigger presence, i like them there. and then finally, i like what they're doing offline. they have a deal with discover set to go live this summer that will get them into seven million retail stores. >> alex, i agree. i think it's a good place. market near all time highs. we should be buying ebay. well put. thank you. my name is christian, i'm from new jersey, i'm pitching d.r. horton. >> you think you know their hedge? they report? >> tomorrow.
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>> they're out there. >> i was going to say before today. pulte i think they beat. i think d.r. horton, the reason i like them is we have a low rate environment, which means people can get big mortgages, one of the issues is they've had a high cancellation rate. i think with a lower average buying price than the average in the united states, they're going to have an easier time having buyers get into their homes. that's going to lower the cancellation rate, increase their backlog and essentially drive sales in the future. >> i think it's a great story. the way i have been approaching these things is let them come in and buy. housing renaissance right now, well done. thank you. >> thank you. >> hi, jim. i'm nick. i'm from new york. i want to give you a big, big, apple boo-yah. >> i'll take it. >> i'm going to shout out to mom, dad, jess and my good friend george. >> you left out half a dozen. >> today i want to talk about gnc. they really established
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themselves with a best of breed. they have explosive growth. same store sales have increased 22% per quarter in the past two years, which is phenomenal for such a large retailer. i think now is a great time i'm hoping. >> worried about the quarter? >> it's coming up on monday. >> i know, my concern is this, the stock has been a red hot stock. i'm worried about supplements, nutrition, government regulation. think they're cool? i think the warning on dma isn't as significant as most people think. ten of the 11 companies reformulated their products and a few analysts also stated they don't think it will be as significant. also, someone who lifts, i don't take that stuff seriously. all in all, i think it's a good company to hop into. >> a new reward program, vitamin shop, yes, no? >> they got hit real bad on earnings back a couple months ago. the thing i really like about gnc is their 25% market share and sporting nutrition industries. >> well, you are a smart guy.
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i recommend that stock. once again, you might as well see the quarter. actually, every one of these stocks real good ideas, real good. thank you very much. listen up, they've done the work. that's the students from the villanova equity society. stick with cramer!
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>> thank you to villanova. i'm jim cramer. [ sirens wailing ] >> a war is raging in mexico's border towns as rival drug cartels battle for control. in a scene of horror. the mexican government has declared its own war on the drug barons. it seems powerless to stem the tide of bloodshed. [ sirens wailing ] >> [ shouting in spanish ] >> the drug gangs here are as heavily armed as the security forces. not in a million years would i expect to find something like this here in mexico. people come here on holiday. thousands have died or simply disappeared, mourned by

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